The Liquidation Letter To Employees is a crucial document required when a company in England and Wales enters liquidation proceedings. It serves as the primary formal communication channel between the appointed liquidator and the company's employees, ensuring compliance with the Insolvency Act 1986 and Employment Rights Act 1996. This document must be issued promptly upon the commencement of liquidation proceedings, providing employees with essential information about their rights, redundancy entitlements, and the claims process. It's particularly important as it helps fulfill the liquidator's statutory obligations while ensuring employees receive clear guidance during this challenging transition.
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1. Opening Statement: Formal notification of company entering liquidation
2. Liquidation Details: Type of liquidation and appointment of liquidator
3. Immediate Impact: Effect on employment status and immediate next steps
4. Payment Information: Status of wages, redundancy pay, and other entitlements
5. Claims Process: How to claim from National Insurance Fund
6. Timeline: Key dates and deadlines for claims and processes
7. Contact Information: Details of liquidator and relevant authorities
1. TUPE Information: Details about potential business transfer and employee rights, included when there's possibility of business sale
2. Pension Arrangements: Information about treatment of pension schemes and Pension Protection Fund, included when company has pension scheme
3. Consultation Process: Details of any ongoing consultation process, included when collective consultation is required (20+ employees)
1. Claim Forms: Standard forms for claiming redundancy pay and other entitlements
2. FAQ Sheet: Common questions and answers about the liquidation process
3. Contact Directory: List of relevant contacts including government agencies and support services
4. Benefits Guide: Information about available state benefits and how to claim them
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